WHY WE NEED TO SUBMIT RETURNS OF INCOME

  • Type of income and the sources of income are the basic features for compilation and aggregation of total income.
  • Tax will be calculated based on total income. Every person or entity shall submit returns of income every year and these are referred as taxpayers.
  • Sources of Income (Heads of Income) and Taxation Entity. It isimportant to understand who derives the income, is it by the individual or HUF or Firm, LLP, Company so on and so forth. The resident or non-resident shall be reckoned with. These taxpayers are those who gets income from various sources and known as heads of income in Income Tax Law.There are 5 heads of income viz., salaries, house property, business/profession, capital gains, and other sources.
  • Method of ascertaining the total income and total tax -The method of computation of income has been set out. The total income of the year is considered for the calculation of tax liability. On the total income, the deductions as allowed will be applied subject to limits prescribed. It is obligatory for every citizen to pay the applicable income tax in case they have income exceeding limits prescribed under the law. A taxpayer is bond to aggregate the income derived from all the sources of income and submit the return.
  • There are specific rules/provisions as regards income from business/profession for exceeding certain limits of turnover/gross receipts they fall under tax audit provision.
  • Option to file income returns under Presumptive Income Scheme.
  • As regards certain specified incomes under or within specified limits the taxpayers can submit their income returns under the presumptive income/tax basis and in these cases of returns, the taxpayer need not submit financial statements like Profit and Loss Account and Balance Sheet.
  • Govt of India, CBDT, CPC, SFT, 26AS, Prepaid Taxes TDS etc.The Govt of India since from decades year after year has been enlarging the scope and the liability to deduct at source from varioustypes of income and the rules are made stringent and mandatory.
  • It appears that there is no such income which do not have shade of TDS provisions. This situation puts every person entitled to TDS to submit theirincome returns and claim TDS.
  • Recently during mid 2021 year, the Govt of India through CBDT (Central Board of Direct Taxes) and CPC (Central Processing Centre) unveiled a new income tax portal by disengaging old portal.
  • The salient features or new features envisaged number of new inclusions in compilation and reporting data, facelessassessmentsand cross verification of taxpayer’s SFT (Significant Financial Transactions and GST Turnovers).
  • This has enabledtaxpayer to submit seamlessly their income returns and take credit for all the prepaid taxesby downloadingone simple form called 26AS from IT website and this 26AS includes prepaid taxes, Advance Tax, TDS, TCS, Self Asst. Tax and especially data obtained as under the annual information system, and it covers GST Turnover and details of Significant Financial Transactions entered by taxpayerduring the year.
  • We do adhere to what we have stated above.
  • Our Company aims to touch upon services to those taxpayers on a very comfortable online and offline as per Client’s individual choice/s. While we ensure speedy and trustworthy filing of returns, we count upon taxpayers who come to us to the provide the requisite documentary proof/s in photocopy format for various incomes as well as all allowable deductions.

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